Blackrock letter11/28/2023 ![]() To support this question, the Letter predicts that “the next 1,000 unicorns won’t be search engines or social media companies, they’ll be sustainable, scalable innovators – startups that help the world decarbonise and make the energy transition affordable for all consumers”, and adds that established companies should endeavour to do likewise. The Letter asks what leaders of public companies are currently doing and will do to “disrupt” their business, and whether, as industries are transformed by the transition, their businesses will go the way of the “phoenix” and reinvent themselves for long-term success, or go the way of the dodo. The Letter notes that the energy transition can both positively and negatively impact companies, which is why strategy and resilience to transition risks are identified as key drivers of long-term economic potential. Net Zero Transition Risks and Opportunities The question is, will lead, or will follow?” Fink said he expects this growth in sustainable economic activity to continue at pace, stating that “every company and every industry will be transformed by the transition to a net zero world. This blog post examines key focus areas of the Letter.ĭrawing on the growth of the sustainable finance markets, the Letter notes that sustainable investments globally have now reached over US$4 trillion, and the actions and ambitions of economic actors towards decarbonisation have increased markedly over the past two years. Given BlackRock’s status as the world’s largest asset manager by assets under management, such public statements have been and will continue to be noted by leaders of public companies throughout the US and globally. The Letter focuses on the importance of sustainability issues to companies from a financial perspective, and seeks to highlight the economic benefits of stakeholder capitalism.įink’s 20 Letters to CEOs also drew attention to sustainability issues, noting that climate change had “become a defining factor in companies’ long-term prospects”. On 17 January 2022, Larry Fink, the founder and chief executive of BlackRock, published his annual Letter to CEOs (the Letter), titled “The Power of Capitalism”. ![]() The world’s largest asset manager stressed that sustainability issues will continue to be fundamental to companies’ long-term economic outlook.
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